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Does anyone have an equation that combines "Location Location Location" and "Supply/Demand" when it comes to housing costs?

I see this argued frequently and haven't made up my mind. Yes, Supply Demand hold true, however housing is slow moving. And, as "Locations" get more desirable (mostly through jobs), prices go up.

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what? that "equation" is just "supply / demand"

as locations get more desirable, demand goes up.

Yes exactly. Prices are high because demand is high. So you build more housing, but the demand is still increasing and creating housing is slow. So you never catch up, the most expensive real estate is always desirable and always high price, no matter how much you build.

A common response to this is a thought experiment where you dump 100% vacancy, prices must come down. But that can't happen, building density is still slow no matter what. I'm talking in the most dense areas in the U.S. like Manhattan.

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